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Novatel Wireless, Inc. (NASDAQ: NVTL), a leading provider of intelligent
wireless solutions, announced preliminary financial results for the
fourth quarter and fiscal year ended December 31, 2012.

Fourth quarter revenue was $70.7 million, as compared to $109.8 million
in the fourth quarter of 2011. GAAP net loss in the quarter was $14.9
million, or $(0.45) per share. The GAAP net loss includes the impact of
non-cash items including $1.1 million in share-based compensation
expense; $1.0 million of employee stock purchase plan cancellation
charges; $0.3 million of an intangible asset valuation increase; $2.6
million of depreciation and amortization expense; and, $0.3 million in
deferred tax asset charges. On a non-GAAP basis, a reconciliation of
which can be identified in the attached schedule, net loss for the
quarter was $12.6 million, or $(0.38) per share.

“We believe the fundamental progress we made on our strategic
initiatives in the fourth quarter has positioned us for a stronger 2013,
and currently anticipate significant sequential revenue growth and
bottom line improvement in the first quarter,” said Peter Leparulo, CEO
of Novatel Wireless. “Our M2M business grew sequentially by 16% in the
fourth quarter due to the positive impact of our new product
introductions, customer wins and the changes we made to our sales
channels. We believe this business is well-poised to benefit from strong
growth in key verticals for our M2M asset management solutions, and
growing contributions from our M2M embedded solutions. In mobile
computing, we are pleased to have introduced two new products, the MiFi®
Liberate™ with AT&T and the MiFi® 5510L with Verizon Wireless, and
expect to see the benefits of these in the first quarter.”

Fiscal year 2012 revenue was $344.3 million. GAAP net loss for the year
was $89.3 million, or $(2.72) per share. The GAAP net loss includes the
impact of non-cash items including $6.5 million in share-based
compensation expense; $1.0 million of employee stock purchase plan
cancellation charges; $49.5 million in goodwill and intangible asset
impairment charges; $12.3 million of depreciation and amortization
expense; and, $0.4 million of net deferred tax asset charges. On a
non-GAAP basis, a reconciliation of which can be identified in the
attached schedule, net loss for the year was $28.2 million, or $(0.86)
per share.

Recent Business Highlights

On November 16, 2012, Novatel Wireless announced the commercial
availability of the MiFi® Liberate being sold through AT&T, the first
Intelligent Mobile Hotspot device with a touchscreen display, and the
first launch of the Company's MiFi® 2 next generation product. The
MiFi Liberate™ includes a new user interface based on 2.8" multi-touch
interactive color display, connectivity for up to 10 devices, 11 hours
of continuous use, and other capabilities beyond pure connectivity
such as a DLNA-certified media center.

On January 29, 2013, Novatel Wireless announced the new MiFi 5510L
Intelligent Mobile Hotspot to be launched on the Verizon
Wireless network as the Verizon Jetpack™ 4G LTE Mobile Hotspot MiFi®
5510L. The device exterior is based on Verizon Wireless' new iconic
design with a red translucent lens. The MiFi 5510L is a personal
mobile hotspot providing Internet connectivity on the go and capable
of sharing high-speed 4G LTE broadband Internet connectivity with up
to 10 Wi-Fi enabled devices simultaneously. The MiFi 5510L features
capacitive touch navigation keys for quick and easy access to
essential device details and supports the latest security requirements
that some of the strictest corporate VPNs require, including VPN
Pass-through and SPI Firewall.

Recently, Novatel Wireless announced the commercialization of its MT
3050 asset management solution on the Verizon Wireless network. The MT
3050 is a mobile tracking OBD-II device which reduces up-front costs
for insurance telematics and fleet management applications with easy,
plug-and-play installation and industry-leading small form factor. The
new MT 3050 also features integrated disconnect alert supported by an
in-device backup battery. The MT 3050 is an ideal solution for
insurance telematics and fleet management providers who are looking
for information on the vehicle, vehicle location or driver behavior
resulting in productivity improvements and cost reductions for
customers.

First Quarter 2013 Business Outlook

The following statements are forward-looking and actual results may
differ materially. Please see the section titled, “Cautionary Note
Regarding Forward-Looking Statements” at the end of this press release.
A more detailed description of risks related to our business is included
in the reports filed by the company with the Securities and Exchange
Commission.

Our guidance for the first quarter of 2013 reflects current business
indicators and expectations as of the date of this release. All figures
are approximations based on management's beliefs and assumptions as of
the date of this release.

We are currently forecasting sequential improvement in both our mobile
computing and M2M businesses, driven by recent product launches. The
relatively wide guidance range is attributable to the uncertainty
related to forecasting the sell-through volumes for two of the new MiFi
products, and the uncertain timing of other product launches during the
quarter.

First Quarter 2013

Revenue

$83 - $93 million

Non-GAAP Gross Margin

22% - 24%

Non-GAAP EPS

$(0.19) - $(0.07)

Conference Call Information

Novatel Wireless will host a conference call and live webcast for
analysts and investors today at 5:00 p.m. ET. To access the conference
call:

In the United States, call 1-877-317-6789

International parties can access the call at 1-412-317-6789

Novatel Wireless will offer a live webcast of the conference call, which
will be accessible from the "Investors" section of the company's website
at www.NVTL.com.
A telephonic replay of the conference call will also be available one
hour after the call and will run through March 1, 2013. To hear the
replay, parties in the United States may call 1- 877-344-7529 and enter
conference code 100 245 86#. International parties may call
1-412-317-0088 and enter the same code.

Some of the information presented in this release constitutes
forward-looking statements based on management's current expectations,
assumptions, estimates and projections. In this context, forward-looking
statements often address expected future business and financial
performance and often contain words such as “may,” “estimate,”
“anticipate,” “believe,” “expect,” “intend,” “plan,” “project,” “will”
and similar words and phrases indicating future results. The information
presented in this release related to our financial results for the
fourth quarter ended December 31, 2012 and our outlook for the first
quarter of 2013, as well as statements regarding new product launches,
are forward-looking. Forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from
those anticipated in such forward-looking statements. The Company
therefore cannot guarantee future results, performance or achievements.
Actual results could differ materially from the Company's expectations.

Factors that could cause actual results to differ materially from
Novatel Wireless' expectations are set forth as risk factors in the
Company's SEC reports and filings and include (1) the future demand for
wireless broadband access to data, (2) the growth of wireless wide-area
networking, (3) changes in commercially adopted wireless transmission
standards and technologies including 3G and 4G standards, (4) continued
customer and end user acceptance of the Company's current products and
market demand for the Company's anticipated new product offerings, (5)
increased competition and pricing pressure from current or future
wireless market participants, (6) dependence on third party
manufacturers in Asia and key component suppliers worldwide, (7)
unexpected liabilities or expenses, (8) the Company's ability to
introduce new products in a timely manner, (9) litigation, regulatory
and IP developments related to our products or component parts of our
products, (10) the outcome of pending or future litigation, including
the current class action securities litigation, (11) the continuing
impact of the recent global credit crisis on the value and liquidity of
the securities in our investment portfolio, (12) dependence on a small
number of customers, (13) the effect of changes in accounting standards
and in aspects of our critical accounting policies and (14) the
Company's plans and expectations relating to strategic relationships,
international expansion, software and hardware developments, personnel
matters and cost containment initiatives.

These factors, as well as other factors described in the reports filed
by the Company with the SEC (available at www.sec.gov),
could cause actual results to differ materially. Novatel Wireless
assumes no obligation to update publicly any forward-looking statements
for any reason, even if new information becomes available or other
events occur in the future, except as otherwise required pursuant to
applicable law and our on-going reporting obligations under the
Securities Exchange Act of 1934, as amended.

Non-GAAP Financial Measures

Novatel Wireless has provided in this release financial information that
has not been prepared in accordance with GAAP. Non-GAAP operating
expenses, net income and earnings per share exclude stock-based
compensation expenses, charges and benefits related to M&A activities,
acquisition-related intangible-asset amortization, a litigation accrual,
and merger integration costs. Non-GAAP net income and earnings per share
for the full year also exclude the impact of establishing a valuation
allowance related to deferred tax assets and assume a tax rate which
management believes reflects its long-term effective tax rate.

Adjusted EBITDA and Non-GAAP net income, earnings per share, operating
expenses, and gross margin are supplemental measures of our performance
that are not required by, or presented in accordance with, GAAP. These
non-GAAP financial measures are not intended to be used in isolation
and, moreover, they should not be considered as a substitute for net
income, diluted earnings per share, operating expenses, gross margin or
any other performance measure determined in accordance with GAAP. We
present adjusted EBITDA and non-GAAP net income, earnings per share,
operating expenses, and gross margin because we consider each to be an
important supplemental measure of our performance.

Management uses these non-GAAP financial measures to make operational
decisions, evaluate the Company's performance, prepare forecasts and
determine compensation. Further, management believes that both
management and investors benefit from referring to these non-GAAP
financial measures in assessing the Company's performance when planning,
forecasting and analyzing future periods. The stock-based compensation
expenses are expected to vary depending on the number of new grants
issued to both current and new employees, and changes in the Company's
stock price, stock market volatility, expected option life and risk-free
interest rates, all of which are difficult to estimate. In calculating
non-GAAP operating expenses, net income and earnings per share,
management excludes stock-based compensation expenses and charges
related to M&A activity to facilitate comparability of the Company's
operating performance on a period-to-period basis because such expenses
are not, in management's review, related to the Company's ongoing
operating performance. Management uses this view of its operating
performance for purposes of comparison with its business plan and
individual operating budgets and allocation of resources.

We further believe that these non-GAAP financial measures are useful to
investors in providing greater transparency to the information used by
management in its operational decision making. We believe that the use
of non-GAAP operating expenses, net income and earnings per share also
facilitates a comparison of Novatel Wireless' underlying operating
performance with that of other companies in our industry, which use
similar non-GAAP financial measures to supplement their GAAP results.

Calculating non-GAAP operating expenses, net income and earnings per
share have limitations as an analytical tool, and you should not
consider these measures in isolation or as substitutes for GAAP
operating expenses, net income and earnings per share. In the future, we
expect to continue to incur expenses similar to the non-GAAP adjustments
described above, and exclusion of these items in the presentation of our
non-GAAP financial measures should not be construed as an inference that
these costs are unusual, infrequent or non-recurring. Investors and
potential investors are cautioned that there are material limitations
associated with the use of non-GAAP financial measures as an analytical
tool. Some of the limitations in relying on non-GAAP operating expenses,
net income and earnings per share are:

Other companies, including other companies in our industry, may
calculate non-GAAP operating expenses, net income and earnings per
share differently than we do, limiting their usefulness as a
comparative tool.

The Company's income tax expense will be ultimately based on its GAAP
taxable income and actual tax rates in effect, which may differ
significantly from the effective tax rate used in our non-GAAP
financial measures.

In addition, the adjustments to our GAAP operating expenses, net income
and earnings per share reflect the exclusion of stock-based compensation
expenses that are recurring and will be reflected in the Company's
financial results for the foreseeable future. The Company compensates
for these limitations by providing specific information regarding the
GAAP amount excluded from the non-GAAP financial measures. The Company
further compensates for the limitations of our use of non-GAAP financial
measures by presenting comparable GAAP measures more prominently. The
Company evaluates the non-GAAP financial measures together with the most
directly comparable GAAP financial measures.

Investors and potential investors are encouraged to review the
reconciliation of non-GAAP financial measures contained within this
press release with our GAAP operating expenses, net income, earnings per
share and gross margin. For more information, see the consolidated
statements of operations and the "Reconciliation of GAAP Net Income
(Loss) to Non-GAAP Net Income" contained in this press release.

(C) 2013 Novatel Wireless. All rights reserved. MiFi, Expedite, Enabler,
Enfora, N4A, and the Novatel Wireless name and logo are trademarks of
Novatel Wireless, Inc. Other product or service names mentioned herein
are the trademarks of their respective owners.